Ethanol output to double, blending in petrol to rise to 7.5%-8% by November next year
The government is keen on diverting excess sugar to ethanol because the new season has started with carry forward stocks of over 10 million tonnes.
The government is also targeting increasing ethanol production capacity from existing 426 crore litres to 590 crore litres in next two years which will help it to achieve 10% blending target for mixing ethanol with petrol by 2022.
New Delhi: Ethanol production is likely to double to at least 360 crore litres in the season from December 2020 and until November next year.This will help the government achieve 7.5-8% ethanol blending in petrol, up from the current 5.1%.“We expect mills to divert excess sugar for ethanol production. The government may increase ethanol price that oil companies pay to for buying ethanol extracted from molasses by at least 5% to encourage them.